A Well-Deserved Pullback. The Beginning of Something Bigger?
We all know this market has been overdue for a pullback, if not a larger correction, especially for many tech stocks. For some, that process began in early-August, but the persistent performance of many of the mega-cap tech stocks (APPL, AMZN, TSLA, etc.) has since overshadowed the soft performance of lesser-known tech stocks.
Today’s retreat is significant in that it is coming all at once (the Nasdaq is down 4.5% and the S&P 500 is off 3% at time of writing). What we don’t yet know is if this is the beginning of something more significant, a one-day event, or the kickoff of a well-deserved period of consolidation.
For now, we’re not going to be too reactionary as our significant gains in many stocks allow for some wiggle room. That said, if you’re feeling overexposed there’s no harm in trimming some positions here and/or stepping aside from a few stocks that you are near break-even on and don’t have the stomach to hold through some turbulence.
We will take one incremental action in our portfolio today and that’s to move Adaptive Biotech (ADPT) to hold. If the stock breaks through previous support near 35.8 we will likely take our gain and move on. But for now, ADPT is a hold.